* perhaps closer to PATCH as multiple requests in short time are combined as one (as in mortgage shipping)
On the flip side it also causes a hole that’s increasingly hard to dig out of because if you have bad credit or borderline credit and apply for a card to see if you’re allowed back in at the capitalist buffet, you enter into a feedback loop of diminishing credit worthiness.
It isn’t true however that any form of read changes credit worthiness. There are many routine reads that have no impact. It’s specifically when you’ve directly requested an evaluation for expanded credit. It can’t happen passively, as sometimes banks refresh your credit history and even offer more credit automatically. It also can’t happen for other purposes than expansion of credit.
That's not prima facie unreasonable. If you have someone who suddenly starts applying for lots of personal loans (for example), that's probably something you'd be interested in, as someone who has previously extended credit to that person.
As the prior poster indicated, when you look at your own credit file, it's not a hard pull. Nor is it a hard pull when a creditor updates their records on you as part of ongoing monitoring of your account. It's only a hard pull when the subject is specifically requesting a new, or increased, extension of credit. Those soft-pulls are GETs.
Not completely false, but misleading: you get penalized if a lender looks at it with the express purpose of using it to decide whether or not to offer you credit (called a "hard pull"). You looking at your own credit report does not penalize you, and certain other activities (like getting pre-approved for a loan) won't either.
The penalty for hard pulls isn't that bad, anyway, and disappears after a relatively short while. I currently have 7 hard pulls (I've been chasing credit card rewards offers lately), but my overall credit score is still over 800.